One of the prominent leaders in developing smart cities along with strong footprint across other sectors of construction is popularly known as Kolte Patil Developers. The forerunners of this firm believe in adapting to changes and looking at the positives.
To speak about these positives, we have with us the Man-of-the-Hour Mukesh Jaitley, Group COO, Kolte Patil Developers Limited
Q. What is your take on the Indian Real Estate Sector?
A. The Indian Real Estate has shown resilience in FY 20-21 and showing strong improvement signs in FY 21-22. This Pandemic has taught us many lessons, importance of good quality work friendly homes, so demand for new efficiently designed quality homes is on the increase, already many projects went to drawing boards againto get right mix for developments in this new scenario.There are visible signs of consolidation towards branded developers.
The synergies between different players in field is now evident. The residential sector is bound to grow as Work-from-Home phenomenon is here to stay and the configuration for new development are already evolving. There are mix reactions about commercial spaces though, but I am not so pessimistic on that front. I am very bullish about Indian Real Estate Sector growth because we believe in owning the house whatever be the size it’s a huge Emotional need.
Q. What is your take on Steel v/s other convention materials?
A. Steel is a global commodity and prices varies on a variety of factors. As Steel has shown a rally on price front in last 8-10 months, now we can expect it to stabilise. There are changes in prices with respect to conventional materials too due to increase in fuel cost and associated cost but not in the same ratio as of Steel.
The conventional material especially concrete is still attractive in terms of relative costing and flexibility in designs. Also, the availability of resources (skilled manpower) to do quality workmanship of fabrications is scarce and often tends to be high on cost.
Q. According to you what are the key challenges faced by the Developers?
A. The challenges faced by the Developers,specially in this difficult period is availability of manpower, material which oftenis in short supply, as the production levels of allied industries are not at optimum which also has speculative effect on cost. Though the sales numbers are picking up but not at the desired levels, and rising input cost,and not so fluid cash flow available puts pressure on the schedules. In addition, with impending RERA timelines the projects need to be completed which entails more equity input from Developer side.
Also, associated infrastructure needs to pre-develop or simultaneously develop for any new geographies to be attractive to developers for taking planned developments.
Q. How is technology changing the Construction Industry?
A. The industry is more digitised, and data driven than it was pre- Covid, and this this will further increase. Lot of mechanisations is coming to the play, which lessens the dependency on the work force. The turnaround time of project because of efficiency in design and mechanisation is reduced and faster completion of project are beginning to be seen.The need for being PRO-TECH is growing by day.
Q. According to you which are the prime sectors of construction that will turn the tables for India, as far as the growth is concerned? Why?
A. Real Estate contributes nearly 7 per cent of GDP in India and this share is expected to grow to double digit in a few years. Amongst, its residential real estate will contribute major portion. As demand for houses are going to grow as people seek more secured environment in terms of owning the homes viz-viz rental spaces.
There are multiple allied industries like building material, steel, cement etc. linked to real estate and the sheer volume of employment which sector creates make it one of the most important industry in India’s growth story. The infrastructure push all around the country is also giving much required impetus to the industry.
Q. What are the prime factors that prevent the developers from opting for steel buildings provided the long-term benefits that steel offers?
A. There are multiple factors like cost, site logistics – availability of equipment likespecialised cranesetc. and availability of desired grades and sizes of sections, need to import etc makes up for total eco- system per say.In addition, availability of conventional material like concrete at much lower cost compared to steel makes it more attractive choice for developer segment.
Availability of quality fabrication companies also tends to hinder to go for steel structures. The academic and practical exposure to students must be brought forth tomore students take up specialisation of design of steel structuresand those wanting to diversify and get into execution and contracting and fabrications of steel structures.
Q. As Kolte Patil is involved in smart cities projects, how do you see this changing the Indian Infrastructure Segment?
A. Kolte-Patil cannot afford not to ride the smart development bandwagon. We are already part of it, and it’s been implemented at our LR townships and many such developments across country are being done by various developers which pushes the think tank to evolve new thinking and implementation in the infrastructure segment like number of good road network, development corridors between cities, flyovers, multi-nodal connections metro-rail network in tier one and two cities. This gives extended canvas for the developers to move towards geographies away from already congested cities
Q.Where do we lack in terms of Real Estate Sector as compared to the other developed countries?
A. Real Estate in India is still more labour centric as compared to developed countries, lot of skill development is need of the hour, India can leverage its huge manpower strength if proper skill development trainings are imparted, this coupled with use of machineries the growth acceleration can be achieved many folds.
Q. What outstanding newness does Kolte Patil plan to bring in the coming years?
A. As visible trend is towards living in smart cities, community living so Kolte-Patil is developing fully smart homes communities. We are also exploring space for life sciences campuses, IT buildings and commercial set-up within the community, which generates employment and promotes walk to work culture in some way.
We promote sustainable growth for our communities and create environments which emphasising on maintaining natural resources around our developments.
Q. What is your mantra for success?
A. PLAN GOOD > EXECUTE BEST